these are from comments at Seeking Alpha
“If government deficits are healthy, then, Japan should be the healthiest country on earth. China must be the unhealthiest.”
Japan has government deficits because the people there want to save their money. China has government surpluses because it undercuts everybody else to have the biggest trade surplus.
“If you truely believe all good things come from the government. You’re living on the wrong side of the Atlantic.”
I’m not saying all good things come from government. All I’m saying here is that all circulating currency comes from government. So either someone borrowed, for it to be printed, or government spent it into existence. It may have been spent by government to pay off a corrupt politician (which I do not condone) but it is money that gets spent into economy. It matters who gets it. But the point I am making in the post is that it has to be spent or borrowed into existence for it to be earned by right person.
“If this author’s comments had even a shred of merit, Zimbabwe would have the most vibrant economy on Earth.”
Zimbabwe did not spend to develop its citizen’s capability to become self-sufficient. Zimbabwe printed money to give to everyone, even though there were no productive capacities to absorb the money. So the money just bid up the prices. What5 would have happened if Zimbabwe instead built cooperatives and supported grassroots businesses that would provide employment and income to the citizens. The income these citizens earn will give them the capability to buy the new goods they will be all creating. But if the government will just give money to the citizens all of who do not end up producing more, but will just all bid up the few remaining supplies in the economy… well, you get Zimbabwe.
“Government deficits are healthy? For whom? Then, Greece and Japan should be the healthiest economies, right?”
Greece does not issue the money to spend anything. So it shouldn’t even spend anything at all, given that it surrendered its ability to issue to someone else who doesn’t care what happens to them. Greece is a different case altogether.
Well Japan is still standing, even though likely close to half of its citizens are retirees and do not earn or spend much anymore, right? If The US, following your thinking, stops government deficits full stop, while at the same time, its demographics steps into similar to Japan’s condition of most people saving and not spending, the US will fall in an instant. There will be widespread hunger and unemployment, and the hungriest will likely just resort to stealing.
“Japan’s economy has been at a dead stop for 20+ years — because during that time, they have been following the same crony kleptocracy as Zimbabwe. Can’t believe anyone in their right mind would hold up recent Japan as a model to follow.”
Japan has been stagnant for the past 20 years because of demographics, and yes, because they propped up zombie banks. THEY ARE NOT STAGNANT BECAUSE GOVERNMENT HAS BEEN SPENDING TO CREATE JOBS WHERE THERE WOULD HAVE BEEN NONE. That second point is what I am saying governments should do, not build up kleptocracies, as you imply, BECAUSE OBVIOUSLY, I DON ‘T HAVE TO CALL FOR MORE OF IT.
“That sounds like the policy of Venezuelan President Hugo Chavez; How are things going there?”
Well, HUgo Chaves has said: ‘Convinced as I am and as I am from my government that the world needs a new moral architecture over all I believe that this should be the first topic to debate in our world of today, ethics, moral.’ So, you’re right. Hugo Chavez reduces economics into a morality play, that’s why things are not running as well as they they could.
“That’s like saying that if I max out my credit cards and give all the money to you, then we’ll both be better off. You would be, but I sure wouldn’t.”
Of course you wouldn’t be better off. You’re not allowed to issue currency. Neither will I accept currency issued out of thin air from you. But I would, and I’m sure you would, accept currency issued by government, whether it was newly-issued just minutes ago, or it has been circulating for decades.
” when does throwing money down a rat hole (or several Grand Canyons in this case) destroy a nation as happened to Rome and as many of us fear we are doing also?”
When the money keeps getting thrown down the wrong investments. If we persist with malinvestment, and we will end up with the bad driving out the good. And yes, while government borrowing in its own currency cannot go broke, it can print enough to discourage people from holding it, a la Zimbabwe.
How do we know that government is printing just enough? Perhaps the best indication is when those looking for jobs found jobs-and key word is LOOKING. And the jobs don’t necessarily mean jobs that they have to like paying at exorbitant salaries, but jobs at the decent minimum wage at a close enough location doing community jobs.
“Didn’t a country called the USSR and its communist leaders try that? It sure worked great didn’t it?”
Yes, the USSR completely wiped out capitalism. What we are proposing is to augment it, when it is being weak or not working.
” the number one objection I keep getting against the job program it is like the USSR…….Then I get accused of wanting to kill the top 1%! Here is his response: Zoltan Newberry A very telling example - please explain how Steve Jobs takes anything at your BBQ - he brought the delicious bison ribeye steaks,TR. - are you still a RossiAn Leninist at heart? If STEVE Jobs has a $billion, he must have stolen it from others?”
I guess everybody views himself to be Steve Jobs. They don’t realize most of the capitalists are not like Steve Jobs, who really created something that people want. Most of the so-called capitalists are rentiers who try to skim off something for nothing, just like early land grabbers who were early in staking a land claim, then charging everybody else who came later. Worse, a lot are getting something by taking from society, just look at those who engineered a crisis to set up a profitable short trade.
